From the Nikkei website:
Tuesday, November 14, 2000
Stock In Focus: Softbank Technology
TOKYO (Nikkei)--Softbank Technology Corp. (4726)
shares remain volatile, falling to 6000 yen on Monday on
profit-taking following their rise to 8200 yen on Nov. 9.
The share price hit a low of 4400 yen on Oct. 31, but
found a lift after the company announced on Nov. 6 that it
revised its earnings outlook upward.
Softbank Technology, which builds e-commerce
systems, projects pretax profit to reach 851 million yen
for the year ended Sept. 30, a year-on-year increase of
54%.
Sales of the design and construction of systems -- chiefly
business-to-consumer systems -- were strong at 2.5
times the year-earlier result. Sales of products, such as
personal computers and peripherals, to individuals via
the company's own Web site also showed growth.
"Growth in e-commerce-related demand has just barely
started, so there is anticipation for larger growth," says
Ichiyoshi Securities Research Institute Inc. analyst
Toshiyuki Mizunoue. He projects pretax profit for the next
fiscal year to rise 41% on the year to 1.2 billion yen.
Even taking the company's stock split into consideration,
the share price has fallen more than 90% since its
all-time high, prompting some market participants to say
that it is being oversold.
The issue, however, lacks liquidity as its trading unit
stands at 500 shares.
"It is difficult for institutional investors to take part, so it
ends up becoming dominated by short-term funds," says
an analyst at Tokai Tokyo Securities Co.
(The Nikkei Financial Daily Tuesday edition) |
